RAM Updates MEX Capital’s Preliminary AA3 Rating Assigned to the Proposed MYR 1.225 Billion Sukuk

RAM Ratings (RAM) has provided an update to MEX I Capital (MC)’s AA3/Stable preliminary rating on MC’s proposed MYR 1.225 billion Sukuk which was assigned in November 2019. The principal cash flows to service this proposed Sukuk are solely obtained from Maju Expressway (ME), MC’s 96.8%-held subsidiary, the concessionaire for the Maju Express Highway (the Highway). Proceeds from the proposed Sukuk will be used to refinance MC’s existing MYR 1.35 billion Sukuk.

According to RAM, the transaction structure is largely unchanged, but revisions have been made to the yield assumptions and the maturity schedule. RAM stated that the Highway’s short-term traffic volumes have also been revised downwards...